Advertising Strategy Of Nokia

DECLARATION I hereby declare that the research work embodied in this dissertation entitled “A study on Impact of Advertising Strategies of Nokia Cellular Phones” has been carried out by me under the guidance and supervision of Mr.SRINIVASAN, Professor (Internal Guide), M.P.Birla Institute of Management, Bangalore. I also declare that this dissertation has not been submitted to any other university/ Institution for the award of any other Degree/Diploma. Place: Bangalore Date: 17th June 2005 (VIJAYA KUMAR N C) Reg No: 03XQCM6118

Certificate

I hereby certify that this dissertation is an offshoot of the research work undertaken and completed by Mr.Vijaya Kumar N C under the guidance and supervision of Mr. B.Srinivasan, Professor, (Internal Guide) MPBIM, Associate Bharatiya Vidya Bhavan, Bangalore. Place: Bangalore Date: (Dr. N.S. Malavalli) Principal MPBIM, Bangalore

ACKNOWLEDGEMENT I sincerely thank Dr. Nagesh Malavalli (Principal), M.P.Birla Institute of Management, Bangalore for granting me the permission to do this Research Project. I would like to express my immense gratitude to Mr.B.Srinivasan, Professor, (Internal Guide), M.P.Birla Institute of Management, Associate Bharatiya Vidya Bhavan, Bangalore for his guidance, continuous encouragement and valuable suggestions at every stage of the project. I would like to express my indebtedness to Prof. Santhanam (Professor), M.P.Birla Institute of Management, Associate Bharatiya Vidya Bhavan, Bangalore for his valuable suggestions and encouragement which are imperative for the completion of this project. I extend my deep sense of gratitude to all my family and friends who have directly or indirectly encouraged and helped me to complete my project successfully. I would like to extend my thanks to all the unseen hands that have made this project possible. Place: Bangalore Date: 17th June 2005 (Vijaya Kumar N C)

EXECUTIVE SUMMARY This report titled “IMPACT OF ADVERTISING STRATEGIES OF NOKIA CELLULAR PHONES” is submitted in partial fulfillment of the requirements for the degree of Master of Business Administration of Bangalore University. This study is an attempt to understand the impact of advertising of Nokia Cellular Phones. It also tries to evaluate the advertising effectiveness in establishing brand patronage among the viewers. The objective of this study is To analyze the advertising effectiveness on consumers of Nokia Cellular Phones, to analyze the different medium through which the advertisement reaches maximum number of people in the market, to analyze the strategies that the company should adopt such that the viewers turn into consumers, to know the present status of the competitors of Nokia Cellular Phones in terms of advertisement. The survey was conducted among the college students because the market for cellular phones is huge. Questionnaire were prepared and distributed to get the suggestions about the effectiveness of advertisement of Nokia Cellular Phones. By the survey, we came to know about the various media that has to be used greater number of people in the market and the strategies that has to be used for making the advertisement more effective when compared to its competitors. From the conclusion of this study we can come to the know what strategies can be adopted such that the advertisement of Nokia Cellular phones can be made more efficient when compared to their competitors. The medium of advertisement that has to hire through which we can reach maximum number of people. The style, word and tone that has to be used in the advertisement that attracts more number of people. The type of feeling that is created by the advertisement and the strategies to adopt that attract the people toward those feelings.

STATEMENT OF THE PROBLEM “TO STUDY THE IMPACT OF THE ADVERTISEMENT STRATEGIES OF NOKIA CELLULAR PHONES.” In this market which is full of competitors, we would like to know the strategies that help us to beat our competitors. This study helps us to know how we can over come our competitors with regard to advertisement. OBJECTIVES OF THE STUDY: 1. To analyze the advertising effectiveness on consumers of Nokia Cellular Phones. 2. To analyze the different medium through which the advertisement reaches maximum number of people in the market. 3. To analyze the strategies that the company should adopt to turn viewers into consumers. 4. To know the present status of the competitors of Nokia Cellular Phones in terms of advertisement. 5. To analyze what the viewers expect from the advertisement in present generation. SCOPE OF THE STUDY: The study is conducted with respect to Nokia Cellular Phones. Due to time and resource constraints, this study is focused on College Students. This study helps us to know how we can over come our competitors with regard to advertisement. OPERATIONAL DEFINITIONS: The definitions committee of the American Marketing Association has defined advertising as, “Any paid form of non-personal presentation of idea, goods or service by an identified sponsor.”

NOKIA From its inception, Nokia was in the communications business as a manufacturer of paper- the original communications medium. Then came technology with the founding of the Finnish Rubber Works at the turn of the 20th century. Rubber and Associated Chemicals were leading edge technologies at that time. Another major technological change was the expansion of electricity into homes and factories which led to the establishment of the Finnish Cable Works in 1912 and, quite naturally, to the

manufacture of Cables for the telegraph industry and to support that new fagled device – the telephone. After operating for 50 years, an Electronics Department was set up at the Cable Works in 1960 and this paved the way for a new era in telecommunications. Nokia Corporation was formed in 1967 by the merger of Nokia company – the original paper – making business – with the Finnish Rubber Works and Finnish Cable Works. Design has always been important at Nokia and today’s mobile phones are regarded as a benchmark for others to follow. Take, for example, multi-coloured, clip-on facias which turned mobiles into a fashion item overnight. But Nokia has always thought like that and back in the fashion conscious 1960’s when one branch of the corporation was a major rubber manufacturer, it hit on the idea of making brightly coloured rubber boots at a time when boots followed the Henry Ford principle – you could have any colour, so long as it was black! The 60’s, however, were more important as the start of Nokia’s entry into the telecommunications market. A radio telephone was developed in 1963 followed, in 1965, by data modems – long before such items were even heard of by the general public. In the 1980’s, everyone looked to micro computers as t he next ‘big thing’ and Nokia was no exception as a major producer of computers, monitors and T.V. sets. In those days, the prospect of High Definition T.V., Satellite Connections and text services fuelled the imagination of the fashion conscious homeowner. In the background, however, changes were afoot. The world’s first international cellular mobile telephone network, NMT, was introduced in Scandinavia in1981 and Nokia made the first car phones for it. True enough, there were ‘transportable’ mobile phones at the start of the 80’s but they were heavy and huge. Nokia produced the original hand portable in 1987 and phones have continued to shrink in inverse proportion to the growth of the market ever since. It took a technological breakthrough and a change in the political climate to create the wire-free world people are increasingly demanding today. The technology was the digital standard, GSM, which could carry data in addition to high quality voice. In 1987, the political goal was set to adopt GSM throughout Europe on July 1st 1991. Finland met the deadline, thanks to Nokia and the operators. Politics and technology have continued to shape the industry. The 80’s and 90’s saw widespread deregulation which stimulated competition and customer expectations. Nokia changed too and in 1992 Jorma Ollila, then President of Nokia Mobile Phones, was appointed to head the entire Nokia group. The Corporation divested the non-core operations and focused on telecommunications in the Digital Age. Few people in the early 90’s would have thought that ‘going digital’ would change things so much.

2001 and into the Future Nokia is harnessing its experience in mobility and networks to generate a startling vision of the future. Meeting rooms, offices and homes will be ‘smart’ enough to recognize their human visitors and give them whatever they want by listening to their requests. Nokia welcomes change and improvement and can embrace new ideas at great speed. Such characteristics will never change but, as to the rest, the story has only just began! During the past few years Nokia has been actively acquiring companies with interesting new technologies and competencies, including also investments in minority positions. All of these acquisitions and investments were targeted to enhance Nokia’s ability to help create the mobile world. During the past few years Nokia has been divesting businesses which have not been a critical component to our vision of the Mobile World. This strategy has enabled Nokia to focus on shareholder value by concentrating on the core competencies and business areas where we see the most value added and the best growth opportunities. NOKIA FIRST IN TELECOMMUNICATIONS The world’s first international cellular mobile telephone network NMT was opened in Scandinavia in 1981 with Nokia introducing the first car phones for the network. The world’s first NMT hand portable, the Nokia cityman was launched in 1987. Year 2003: Nokia announce that the world’s first CDMA 2000® 1xEV-DV high speed packet data phone call was completed at Nokia’s CDMA Product Creation Centre in San Diego. The call, achieving a peak data rate of 3.09 Mbps, was made between a test set based on a commercially available Nokia 2285 handset upgraded with a Nokia 1xEV-DV chipset and a Racal Instruments, Wireless Solutions Group, 1xEV-DV base station emulator. This chipset is the world’s first to support complete 1xEV-DV Release C functionality. Year 2004: Using Nokia’s CDMA Dual -Stack handset, Nokia demonstrated the Industry’s first Mobile IPv6 call at the 3G World Congress Convention and Exhibition in November. The demonstration highlighted real-time streaming video with seamless hand off between two CDMA access networks using Mobile IPv6. Nokia announced the Nokia NFC (Near Field Communication) shell, the latest step in the development of innovative products for mobile communications, in November. With the Nokia NFC shell on their phone, consumers will be able to easily access a variety of services and conveniently exchange information with a sample touch gesture utilizing NFC technology.

In October Nokia and Telia Sonera Finland successfully conducted the world’s first EDGE-WCDMA 3G packet data handover in a commercial network. Achieving a first for the Asia-Pacific region, Nokia, Media Corp Technologies, M1 and the Media Development Authority of Singapore jointly showcased a live end-to-end mobile phone TV broadcast over a DVB-H (Digital Video Broadcast – Handheld) network at the Nokia Connection event in Singapore. Nokia and Texas Instruments Incorporated introduced the first preintegrated and validated series 60 Reference Implementation based on TI’s OMAP (TM) processor - powered reference design in February. The reference implementation is available immediately to series 60 licenses. Year 2005: The Nokia 6630 imaging smart phone has as the first device in the world achieved global GCF 3G WDCMA certification. The certification was achieved based on the requirements defined by Global Certification Forum (GCF), an independent industry body which provides network compliancy requirements and testing for GSM / WCDMA mobile devices. SBS Finland’s Kiss FM became the first radio station in the world to begin Visual Radio Broadcasts. The unique new concept developed by Nokia offers the listeners the possibility to give feedback and to participate in programs easier than ever before. Nokia introduced a new product for secure mobile contactless payments and ticketing. The world’s first Near Field Communications (NFC) product for payment and ticketing will be an enhanced version of the already announced Nokia NFC shell for Nokia 3220 phone.

CELLULAR

A type of wireless communication that is most familiar to mobile phones users. It’s called ‘Cellular’ because the system uses many base stations to divide a service area into multiple ‘Cells’. Cellular cells are transferred from base station to base station as a user travels from cell to cell. The basic concept of cellular phones began in 1947, when researchers looked at crude mobile (Car) phones and realized that by using small cells (range of service area) with frequency reuse they could increase the traffic capacity of mobile phones substantially. However at that time, the technology to do so was nonexistent. Anything to do with broadcasting and sending a radio or television message out over the airwaves comes under Federal Communications Commission (FCC) regulation. A cell phone is a type of two-way radio. In 1947, AT & T proposed that the FCC allocate a large number of radio spectrum frequencies so that widespread mobile telephone service would become feasible and AT & T would have an incentive to research the new technology. We can partially blame the FCC for the gap between the initial concept of Cellular Service and its availability to the

public. The FCC decided to limit the amount of frequencies available in 1947, the limits made only twenty-three phones conversations possible simultaneously in the same service area – not a market incentive for research. The FCC reconsidered its position in 1968, stating “if the technology to build a better mobile service works, we will increase the frequencies allocation, freeing the airwaves for more mobile phones.” AT & T and BELL labs proposed a cellular system to the FCC of many small, low-powered, broadcast towers, each covering a ‘Cell’ a few miles in radius and collectively covering a larger area. Each tower would use only a few of the total frequencies allocated to the system. As the phones traveled across the area, cells would be passed from tower to tower.

WIRELESS STANDARDS ANALOG SERVICE: A method of modulating radio signals so that they can carry information such as voice or data. Analog cellular phones work like a FM radio. The receiver and transmitter are tuned to the same frequency, and the voice transmitted is varied within a small band to create a pattern that the receiver reconstructs, amplifies and sends to a speaker. The drawback of analog is the limitation on the number of channels that can be used. DIGITAL SERVICE: A method of encoding information using a binary code of 0’s and 1’s. Most newer wireless phones and networks use digital technology. In digital, the analog voice signal is converted into binary code and transmitted as a series of on and off transmissions. One of digitals drawbacks is that there are three digital wireless technologies, CDMA, TDMA, and GSM. Phones that work with one technology may not work on another. TDMA IS-136 (TIME DIVISION MULTIPLE ACCESS) It is an update to TDMA IS-54, also called Digital AMPS or D-AMPS. Released in 1994, TDMA IS-136 uses the frequency bands available to the wireless network and divides them into time slots with each phone user having access to one time slot at regular intervals. TDMA IS-136 exists in North America at both the 800 MHz and 1900 MHz bands. Major US carriers using TDMA and AT & T wireless services, BELL SOUTH and SOUTH WESTERN BELL. CDMA IS-95 (CODE DIVISION MULTIPLE ACCESS): It is based on a form of spread spectrum technology that separates voice signals by assigning them digital codes within the same broad spectrum. CDMA type technology was used in military communication systems because it was resistant to interface from enemy signals. The Qualcomm Corporation began developing a CDMA wireless system in the late 1980’s that was accepted as a s tandard in 1993 and went

into a operation by 1996. CDMA also exists at both the 800 MHz and 1900 MHz bands. The major US carriers using CDMA are AIR TOUCH, BELL ATLANTIC / NYNEX, GTE, PRIMECO and SPRINT PCS. GSM (GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS): It is based on an improved version of TDMA technology. In 1982, the conference of European posts and Telecommunications (CEPT) began the process of creating a digital cellular standard that would allow users to roam from country to country in Europe. By 1987, the GSM standard was created based on a hybrid of FDMA (Analog) and TDMA (Digital) technologies. GSM engineers decided to use wider 200 KHz channels instead of the 30 KHz channels that TDMA used, and instead of having only 3 slots like TDMA, SM channels had 8 slots. This allowed for fast bit rates and more natural-sounding voice- compression algorithms. GSM is currently the only one of the three technologies that provides data services such as email, fax, internet browsing, and intranet / LAN wireless access, and it’s also the only service that permits users to place a call from either North America or Europe. The GSM standard was accepted in the US in 1995. GSM-1900 cellular systems have been operating in the US since 1996, with the first network being in the Washington D.C. area. Major carriers of GSM 1900 include omni point, Pacific Bell, Bell South, Sprint Spectrum, Microcell, Western Wireless, Powertel and Aerial.

DIFFERENT TECHNOLOGY BLUETOOTH TECHNOLOGY It is a technology for wireless communication between devices. It’s based on a lowcost short-range radio link. Every decorator knows that cables and wires are unsightly and confusing. Bluetooth connections allow wireless communication between devices within a range of about 30 feet (10 metres). Unlike infrared, you don’t have to point devices directly at each other, or even have both devices in the same room. Blue tooth can initiate connections automatically with paired devices, so you don’t even have to think about it. And no, you don’t have to pay for a Bluetooth connection, no matter how much data you transfer. When two devices share information, there are a few things that have to be worked out: firstly, how they will physically connect through how many wires? Or none at all? – And then what are the agreed commands that will make sense to both devices? Bluetooth is an industry standard that solves both of these issues cheaply, and using very little battery power. GPRS TECHNOLOGY: General Packet Radio Service is a technology that allows your phone to transfer data at moderate speeds. GPRS lets you send data faster than over a GSM data network, and it’s also a lot more efficient. But “data” sounds pretty vague.

To use GPRS, you need a phone that supports it, a subscription from your network operator that supports GPRS, and the proper settings. GPRS does what it says: it sends “packets” of data over a radio wave (on GSM network). Packet switching works like a jigsaw puzzle: your data is split into many pieces, then sent over the network and reassembled at the other end. GPRS is just one of the ways to transport these jigsaw puzzles. EDGE TECHNOLOGY: Enhanced Data rates for Global Evolution (EDGE) enables data connections three times faster than GPRS within the same multi slot class. Like GPRS, you’re billed for the data you transfer, not for the time you spend connected. EDGE opens up a lot of possibilities for connecting to data networks on your mobile phone, making it far less frustrating to stream video and download larger files. To use EDGE, you need a phone that supports it, a subscription from your network operator that supports EDGE, and the proper settings. EDGE is based on General Packet Radio Service, which sends “packets” of data over a radio wave. Packet Switching works like a jigsaw puzzle: your data is split into many pieces, then sent over the network and reassembled at the other end. GPRS is just one of the ways to transport these jigsaw puzzles. JAVA TECHNOLOGY: JAVA is both a programming language and a software platform, and its used to create and run applications for Nokia phones. With JAVA applications, your phone can do more of the things you’d like it to do. Downloading and installing applications is a relatively simple process (as is uninstalling them), and there is a wide range of applications available. JAVA was originally developed by Sun Microsystems. Enhancements and standardization of the JAVA platforms are conducted by the JAVA Community Process (JCP), in which Nokia takes on active role together with sun and other members. There are two parts to JAVA technology: a programming language, and an environment in which those commands can be executed. You need an environment where the language means something, so JAVA brings its own environment along. JAVA enabled Nokia phones – most Nokia models on the market now-contain a JAVA Virtual Machine, which is ready to run applications written in JAVA. This makes using new applications easy, because you usually don’t have to configure, load, or install anything else. MMS TECHNOLOGY: MMS stands for Multimedia Messaging Service, a technology that allows you to create, send and receive text messages that also include an image, audio, and / or video clips. MMS messages are sent from one mobile phone to another, or to an email address. Multimedia Messaging enriches your mobile messages in much the same way as

inserting photos or changing fonts and colours does in email – it’s both useful and expressive. MMS messages are sometimes considered equivalent to so –called “Picture Messaging”, popularized by the recent imaging phones boom, but other uses of the technology do exist. You don’t need to have an imaging phone to send and receive MMS messages, just an MMS-enabled mobile phone, an operator management that supports the service, and the correct settings on your handset. Of course, an imaging phone gives you the option of creating and passing on your original images. An MMS message is a multimedia presentation in a single entry, unlike an email with attachments, making it easier to create and simpler to deliver than an email with attachments. MMS is a scalable technology, which means it’s suitable for most types of mobile phones. And MMS is compatible with fixed email addresses, so it is possible to criss-cross back and forth over the mobile-PC border. MOBILE BROWSING TECHNOLOGY: A mobile browser is simply any program that lets you access and read content on a network from a mobile device – usually the Internet or some other mobile network service. As more phones on the market boast high network connection speeds and colour screens, mobile browsing is becoming more common (and a lot better looking). Many new Nokia models come with an integrated XHTML or even HTML mobile browser, giving you the chance to surf without being chained to a desktop computer. Today’s mobile browsers give you richer colours and faster browsing than the original mobile browsers, and most importantly, a way to access the web at your finger tips. Considering the no-frills WAP sites that started off mobile browsing, the technology has come a long way. In order to browse with a mobile phone, you need to have a phone with a browser (either one that’s built in or downloaded), a subscription from your network operator to a data service (GSM data, GPRS, EDGE, WCDMA, etc) and the correct settings on your phone. Then its up to other companies and individuals to build the sites and services you can browse. MOBILE VIDEO TECHNOLOGY: Mobile video means both creating your own video clips and watching content created by others. There are two types of mobile video content services: downloadable and streaming. You can download, store and play back videos on your mobile device. Or, you can stream video content, which is a better option for viewing longer clips because data isn’t stored on your phone. You can also tune in to live video feeds using streaming. We can − Use a phone equipped with a camera to record your own clips, then send them (by email, MMS or over a wireless connection using Bluetooth technology or infrared).

− Watch streamed news, sports, music videos, or movie trailers. − Watch live camera views such as road conditions, concerts, parties, etc. − Subscribe to MMS videos and download short video content such as daily news, weather or cartoons. − Store your favorite videos on a Multimedia Card (MMC) card – longer clips can fit on a MMC card as long as it has enough capacity. Unless the video you want to watch is already stored on an MMC card, your phone must be able to connect to the internet in order to access to video files. This means you need a phone with a GPRS, EDGE, WCDMA or other network connection, and the correct settings. If you’re interested in streaming video, look for a phone that supports EDGE or CDMA.

REVIEW OF LITERATURE ADVERTISING: Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. It is paid communication because the advertiser has to pay for the space or time in which his advertisement appears. Advertisers include business firms but also museums, charitable organizations, and government agencies that advertise to various target publics. Advertisements are a cost effective way to disseminate messages, whether to build brand preference or to educate a nation’s people. Organizations handle their advertising in different ways. In small companies, someone handles advertising in the sales or marketing departments, who works with an advertising agency. A large company will often set up its own advertising department, whose manager reports to the Vice President of marketing. The advertising department’s job is to develop the total budget, and handle direct-mail advertising, dealer displays and other forms of advertising not ordinarily performed by the agency. Most companies use an outside advertising agency to help them create advertising campaigns and to select and purchase media. Global companies that use a large number of ad agencies located in different countries and serving different divisions have suffered from uncoordinated advertising and image diffusion. Advertising agencies need to redefine themselves as communication companies and assist clients in improving their overall communication effectiveness. Five M’s of Advertising MISSION : What are the advertising objectives? MONEY : How much can be spent?

MESSAGE : What message should be sent? MEDIA : What media should be used? MEASUREMENT : How should the results be evaluated? Strengths of Advertising as a promotional tool 1. It offers planned and controlled message. 2. It can contact and influence numerous people simultaneously, quickly, and at a low cost per prospect. Hence, it is called Mass Means of Communication. 3. It has the ability to deliver messages to audiences with particular demographic and socio-economic features. 4. It can deliver the same message consistently in a variety of contexts. 5. It can reach prospects that cannot be approached by sales man. 6. It helps to presell goods and pull the buyers to retailers. 7. It offers a wide choice of channels for transmission of messages such as visual (by sights), aural, (by ear) aural and visual. 8. It is very useful to create maximum interest and offer adequate knowledge of the new product when the innovation is being introduced in the market. Weakness of Advertising as a promotional tool 1. It is much less effective than personal selling and sales promotion at later stages in the buying process, e.g.: in convincing and securing action. 2. It is less flexible than personal communication. It cannot answer objections raised by prospects. 3. It is essentially one-way means of communication. It cannot obtain quick and accurate feedback in order to evaluate message effectiveness. 4. It is most efficient communication (very low cost per prospect) but it is least effective as a tool of a communication. 5. It is unable to reach prospects when they are in a buying mood. Hence advertisements have to be repeated and repetition involves additional cost. 6. Advertising, many a time lacks credibility and trustworthiness. Importance of Advertising 1. To create widespread visibility in the market and access those pockets which are not approachable by the sales force. Quoting a customer, “Make the customers come to you rather than trying to approach all the potential customers.” 2. As a symbol of sound financial position of the company and also to make the statement that the company is here to stay! 3. To aid in easy brand recall and also create a top of mind awareness of the brand.

4. To make maximum potential customers aware of the new offerings and schemes of the company and initiate enquiries about the same. 5. To establish a strong brand image in the market so as to give the company an edge over its competitors. Communication goals of Advertising Advertising should concentrate on clear and measurable communication objectives known as DAGMAR (Defining Advertising Goals, Measuring Advertising Results). Advertising objectives must be oriented around the process of communication. Communication tasks are, 1. Developing brand awareness. 2. Changing consumer attitudes. 3. Associating desirable themes with products, and 4. Informing consumers about product attributes. The ultimate purpose of most advertising is to help the probability of the sale of the product or a service. Advertising as a mode of promotion increases propensity to purchase-moving the prospect steadily, inch-by-inch, closer to a purchase decision. Of course, advertising is only one of several communication forces. It moves the consumer through successive levels such as unawareness, awareness, comprehension or recognition, conviction (intention to buy) and action purchase. Advertising goals may be divided into four stages of commercial communication as follows: Awareness: the prospects must become aware of the existence of the brand or company. Awareness is the bare minimum goal of advertising. Comprehension: the prospect must understand what the product is and what it will do for him. Comprehension level indicates that people are not only aware of the brand or company that they know the brand name and can recognize the package or trade market. But they are not yet convinced that they must want to buy. Conviction: the prospect must be mentally convinced to buy the brand or the product. The conviction level shows brand preference and intention to buy the product in the near future. Action: the prospect takes meaningful action. Purchase decision is duly taken. Choosing among major media types: The media planner has to know the capacity of the major media types to deliver reach, frequency, and impact. Media planners make their choice among media categories by considering the following variables: Target-Audience Media habits: for example radio and television are the most effective media for reaching teenagers. Product Characteristics: Media types have different potentials for demonstration, visualization, explanation, believability and color.

Women’s dresses are best shown in color magazines, and Polaroid cameras are best demonstrated on television. Message characteristics: timeliness and information content will influence media choice. A message announcing a major sale tomorrow will require specialized magazines or mailings. Cost: Television is very expensive, whereas newspaper advertising is relatively inexpensive. What counts is the cost-per-thousand exposures.

Advertising in India Indian Advertising starts with the hawkers calling out their wares right from the days when cities and markets first began Shop front signage’s From street side sellers to press ads The first trademarks Handbills distributed separately from the products 18th Century: Concrete advertising history begins with classified advertising. Ads appear for the first time in print in Hickey's Bengal Gazette. India's fisrt newspaper (weekly). Studios mark the beginning of advertising created in India (as opposed to imported from England) Studios set up for bold type, ornate fonts, more fancy, larger ads. Newspaper studios train the first generation of visualisers & illustrators. Ads appear in newspapers in the form of lists of the latest merchandise from England Since 1980, advertising in India has demonstrated phenomenal growth – growth in size, quality, and range of services, in the total expenditure in advertising per year. In 1950 advertising expenditure was hardly Rs. 5 Crores. By 1988, it rose to Rs. 900 Crores. It may be around by Rs. 2200 Crores by 2001 A.D. There are now over 400 advertising Agencies as against just 100 advertising agencies around 1970. In the Indian market, we have more than 11,000 branded products extensively advertised in all languages. Press advertisement account for about 50 percent and TV account for about 18 percent of the total advertising costs. In the media sector we have at present intense competition, e.g., TV / Radio, Newspaper each attempting an increasing market share. In the press segment we are witnessing regular media war. In the case of the Press, competition is total. However, media owners are expected to adopt now customer-oriented approach to get rid of such unhealthy competition. Essentials of good Advertisement A good advertisement must have the right message communicated through a right media. It must reach the right people and prospects and that too at a right time and at the right cost. Right timing of an

advertisement needs no emphasis. It should fulfill its sole purpose, viz., gain sale or action from the prospects and the cost of communication should be reasonable. The task assigned to the advertisement can be successfully fulfilled when: 1. It is seen by the desired prospects. 2. It is read by them with interest. 3. It is properly understood by them exactly as the advertiser wants. 4. It is believed by them and it wins their confidence and trust and above all it succeeds in igniting their desire to purchase the product or service offered or sale. Effective advertisements take the prospect near about the point of closing the sale so that actual sale may be easily completed by the sales force. Each advertisement must be a unique selling proposition, invoking maximum force of persuasion to convert a prospect into a customer. In the light of the above information, t he author conducted a research study on the advertising strategies of two leading garment manufacturers in Bangalore City. ATTENTION It can be viewed as an information filter – a screening mechanism that controls the quantity and nature of information any individual receives. Getting a consumer’s attention is not easy. An individual, overtly or accidentally, avoids exposure to stimuli. The advertising environment is truly “cluttered”; most major magazines have almost one-half of their pages carrying advertisements, the other half carrying editorial matter. Amid all this advertising, it is not easy to create an advertisement that stands out enough to get noticed, processed, and remembered. The effectiveness of ads is reduced not only by the higher levels of clutter in general, but even more significantly by the proximity of ads for competing brands from the same product category. The situation is made worse in the broadcast media, especially television. Viewers have always had the freedom to do things while a program is being shown; including leaving the room mentally and physically, but the use of remote control devices has made channelswitching endemic. Television advertisers today have to cope with the phenomena of zapping and zipping. CREATING ADVERTIEMENTS THAT ATTRACTS ATTENTION The attention filter operates at various levels of effort and consciousness. At one extreme is the process of active search wherein a receiver actually seeks information. He or she might solicit opinions of friends or search through magazines not normally read.

Another level could be termed passive search. A receiver searches for information only from sources to which he or she is exposed during the normal course of events. The final level might be called passive attention. Here a receiver has little immediate need for the information and makes no conscious effort to obtain it, but some information may nevertheless enter the system. At all three levels, it is appropriate to discuss why a person obtains information so that ads can be designed to maximize attention. There are, of course, as many reasons as there are situations and individuals. However, it is instructive to examine four general motives for attending to informative stimuli. A first motive is to obtain information that will have a high level of utility for a person. In an advertising context, an individual will obtain product information that will help make better purchase decisions. Second, people may be motivated to expose themselves to information that supports their opinions- supportive exposure-and to avoid discrepant information. Third, there is a desire to be exposed to information that stimulates. Finally, people are motivated to find stimuli that are interesting to them. These motives will be examined in turn. ADVERTISING EFFECTIVENESS: Advertising effectiveness consists in the degree of achievement of the objectives set by an advertiser in consultation with advertising agency working on the account. It may also take the form of an increase in the sales of market share or penetration into a new market segment. ADVERTISING STRATEGIES: Strategy provides the link between advertising objectives and plans and paves the ground for their implementation. It can be instrumental in prioritizing various objectives, taking into account the attitudinal framework as well as corporate and marketing goals, and the market situations and characteristics. Advertising strategy is based on consideration such as the following: • Advertising objectives. • Advertising budgets. • Selection of target audiences. • Advertising message. • Media decision. • Media space decisions. • Company’s standing and it s strength and weaknesses. • Product history and its life cycle stage. • Positioning of the product as indicated by perceptual mapping. • Existing and anticipated competition. BRAND PATRONAGE:

Most of the time, an advertisers (seller) tries to build a brand privilege or patronage for his products or service. A seller has a brand privilege if buyers exhibit brand insistence, brand loyalty, or brand preference towards his product or service. By means of advertising or persuasive mass communication, seller tries to move prospective buyers and existing buyer from lower level to higher level of brand attitude of customers – from brand ignorance to brand awareness, or from brand acceptance to brand preference, loyalty, and insistence RESEARCH METHODOLOGY RESEARCH APPROACH The research for this study is a Descriptive Research. A Descriptive Research is a type of conclusive research, which has its major objective as the description or something, usually market characteristics or functions. It is preplanned and structured. Under this approach a Cross-Sectional study is conducted in which one sample of respondents is drawn from the target population and information is obtained from this sample one. This study is based on Descriptive Research approach comprises the following methods; 1. Secondary Data: Secondary Data refers to that which is compiled by some other than the other researcher for purpose not directly related to the research. These are readily available for processing. This type of data relate to past period. The two main types of secondary data are Internal and External data. The sources used for such data types are as follows: a. Internal: the sources include company annual reports bulletins, research reports, etc. b. External: the sources include: • Published materials such as periodicals and books like business periodicals, marketing journals, general business and trade magazines, etc. • Computerized databases such as internet databases and off-line databases (information available on Diskettes and CD-ROM disks). 2. Primary Data: Primary Data refers to the data gathered for a specific purpose or for a specific research project. These data gives latest information. This type of data is obtained from original sources. In this study, primary data is collected through Questionnaire Method. TOOLS FOR DATA COLLECTION: The approved questionnaire is the main tool used for data collection in this study. The questionnaire consists of structured and unstructured questions. The questionnaire tool is mainly used because:

• Both qualitative and Quantitative information can be gathered. • Factual survey can be done. • Opinion survey in order to secure personal opinions or on a particular matter can be done effectively. This tool is administered through Personal Interview with the target population. SAMPLING PLAN: 1. Sampling Unit – Who is to be surveyed: The sampling unit consists of college students owning Nokia Cellular Phones for analyzing the advertising effectiveness on consumers. 2. Sampling Procedure – How should the respondents be chosen: The sampling technique chosen are Simple Random Sampling and Stratified Random Sampling , in which a sample is drawn probabilistically from each group or strata i.e. College Students owing Nokia Cellular Phones. 3. Sample Size – How many respondents to be surveyed: Due to time and other constraints, the size is 100 respondents. These samples of respondents are chosen randomly. CROSS SECTIONAL STUDY: A Cross Sectional Study is a type of research design involving the collection of information from any given sample of population elements only once. SIMPLE RANDOM SAMPLING: A probability sampling technique in which each element in the population has a known and equal probability of selection. Every element is selected independently of every other element and the sample is drawn by a random procedure from sampling frame. STRATIFIED RANDOM SAMPLING: A probability sampling technique that uses a two-step process to partition the population into sub populations, or strata. Elements are selected from each stratum by a random procedure. ULTIMATE CONSUMER: Ultimate Consumers refers to those individuals who buy goods and services for final use or consumption. DATA ANALYSIS: The data collected are tabulated and classified as required. Statistical techniques such as Frequency Distribution, Central Tendency, Percentages, etc., are used for analysis of primary data. Conclusions are drawn based on the analysis and findings of primary data. DURATION OF THE STUDY: The duration of the study is six weeks. LIMITATIONS OF THE STUDY:

• Due to time and resource constraints, only college students are selected for the study for making an analysis for the advertising strategies. • Due to resource and time constraints, a randomly selected sample has been chosen respondents for making an analysis of advertising effectiveness on consumers.